Japan Softens Yen Warnings Near 160 as 11.7 Trillion-Yen Interventions Lose Traction
Updated
Updated · Reuters · Jun 2
Japan Softens Yen Warnings Near 160 as 11.7 Trillion-Yen Interventions Lose Traction
2 articles · Updated · Reuters · Jun 2
Katayama repeated Japan's standard readiness to act in currency markets on Tuesday, stopping short of the stronger intervention warnings used before April 30 despite the yen nearing 160 per dollar.
11.7 trillion yen spent since April briefly lifted the currency to about 155 from 160.725, but the yen later resumed weakening, reinforcing analysts' view that Tokyo is reluctant to intervene again too soon.
114,667 net short yen contracts in late May—the most since July 2024—suggest speculators are again testing how much further authorities will tolerate the currency's slide.
U.S. coordination could be crucial for any effective yen-buying operation, while domestic pressure is shifting toward structural fixes and possible BOJ rate hikes rather than repeated market intervention.
Kazuo Ueda's Wednesday speech is now the next focal point, with markets looking for signals on whether the BOJ could raise rates later this month as inflation pressures build.
Will Japan's central bank risk recession to save the yen, or is the 160-level the new normal?
Can Tokyo win currency support from the Trump administration while it battles its own domestic inflation?
After a failed ¥11.7T intervention, can 'Sanaenomics' fix the deep structural flaws sinking the yen?